Surety Bonds

A Surety Bond is a three-party agreement whereby the surety guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the surety and the obligee.

Financial Guarantee Bond Definition: A non-cancellable indemnity bond, backed by an insurance company, which guarantees that principal and interest will be paid in compliance with the underlying contractual agreement or promissory note.Financial guarantee bonds are used by debt issuers as a way of attracting investors. The guarantee provides said investors with an additional level of security that the investment will be repaid/obligation will be fulfilled in the event that the securities issuer is unable to do so. The bond may benefit the principal by enhancing the principal’s creditworthiness thereby lowering the cost of financing. The guarantee “wraps” the security/promissory note with the insurer’s indemnity. Because the bond represents an UNCONDITIONAL GUARANTEE of compliance/repayment, a preferred interest rate is often offered.

Winter & Winter Insurance offers free, comparative quotes on most surety bonds from multiple insurance carriers so you can get the best possible rate.

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Moreno Valley Office

CA License: 0H74874Winter & Winter Insurance Provides Auto Insurance, Home Insurance, Commercial Insurance, and Income Tax Service to All of California, Arizona, Nevada and Texas. Including Anaheim, Corona, Orange, LA, Riverside, Orange County, San Bernardino, and San Diego Counties. Our business services and tax division services are nationwide. Affiliated With Professional Insurance Associates, Inc.